Huawei not giving up on U.S. smartphone market despite infrastructure difficulties

Even though Huawei has been frustrated in getting access to the U.S. network infrastructure market because of persistent concerns that it poses a national security threat, the company is not giving up on its smartphone business in the United States. Huawei, which has repeatedly and strenuously denied that it poses any kind of threat or has ties to the Chinese government or military, is focused on improving its U.S. business where it can, and for right now, that is in smartphones. The company has sold its phones to the likes of MetroPCS (NYSE:PCS) and Cricket provider Leap Wireless (NASDAQ:LEAP), and has also produced white-label devices for Tier 1 U.S. carriers (where Huawei's brand has been replaced with the carrier's brand). Huawei aims to raise its profile in the U.S. smartphone market over the course of the year, as well as abroad. Huawei shipped 32 million smartphones last year, which, while up 60 percent from 2011, was well below the company's own prior forecasts for 2012 smartphone shipments. According to ABI Research, Huawei was the world's seventh largest handset maker in the fourth quarter, with 2.5 percent share of the market. Huawei has a target of 60 million smartphone shipments for 2013, which was the high end of its goal for 2012. Richard Yu, Huawei's Consumer Business Group CEO, told CNN that the company is still committed to the American smartphone market. "Gradually, step by step, more and more people will trust Huawei," Yu said. "I think with a brand, the most important thing is trust." Article

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